Calgary office market report

Summary of Q1 2026 office market activity

Energy sector dynamics at play downtown, while residential conversions, and investment activity shape the surrounding submarkets.

Market-wide absorption totaled 46,589 square feet (sf) this quarter and overall vacancy decreased 0.1% from Q4 2025.

Downtown

As we enter 2026, downsizing and consolidation within the energy sector remain the definitive structural forces reshaping Calgary’s downtown office market. The impacts of major merger and acquisition (M&A) activity and their impact on office space availability are currently being processed, while larger relocations within the market, such as Keyera’s upcoming relocation to Suncor Energy Centre and Gibson Energy’s upcoming move to Jamieson Place and their corresponding backfill premises have not been fully realized yet.

City-wide absorption for Q1 amounted to a modest 20,142 sf, leaving the overall vacancy rate at 27.6%. However, the downtown core continues to face headwinds, recording negative net absorption in four of the last five quarters. With major players continuing to reevaluate their footprints post-merger, anticipated further corporate restructuring is expected keep sublease availability elevated through 2026. Downtown’s sublease rate currently sits at 4.5% for Q1.

Despite the anticipated spike in sublease space, a silver lining is emerging. Startup energy companies have been particularly active, touring and leasing spaces in the sub-10,000 sf range. This activity serves as a leading indicator for the market; as these emerging players scale, they are expected to become the next primary drivers of absorption, gradually backfilling the vacancies left behind by the sector's larger consolidators.

Beltline

The Beltline recorded 18,322 sf of positive absorption in Q1, marking its fourth consecutive quarter of growth, lowering vacancy to 15.6%. Demand remains concentrated in amenitized class A buildings, attracting a diverse range of non-energy occupiers seeking modern workspace.

While leasing activity remains steady, the primary driver of declining vacancy is the removal of inventory for residential conversion. Following the expansion of the City’s Development Incentivization Program to the Beltline last quarter, investment interest in residential conversions has accelerated. Future conversions are expected to further tighten the supply-side in the submarket.

Suburban

The suburbs recorded 8,125 sf of net absorption in Q1, maintaining a steady vacancy rate of 16.2%. Despite relatively muted Q1 activity, the suburban market has demonstrated resilience through three consecutive years of positive annual absorption. The quarter was defined by significant asset reallocation, most notably Dominium’s $60 million acquisition of the Imperial Oil campus in Quarry Park. This transaction is a major indicator of investor confidence in the long-term stability of the suburban office market.